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The US Institute for Clinical and Economic Review (ICER) has provided an update to previous pricing models for remdesivir [Gilead Sciences] and other potential future treatments for COVID-19. Footnote 1
In the ICER-COVID Cost Recovery Model, the updated cost-recovery benchmark price for the manufacturer is now $1010−$1600 per 10-day regimen, with forecasted 2020 clinical development expenses included. In public statements, Gilead has said that it plans to spend $11 billion in clinical development on remdesivir in 2020. It is assumed at that approximately one million courses of remdesivir will be available for the treatment of COVID-19 within the first year, and that the $1 billion cost should be recovered, resulting in cost-recovery pricing of $1000 per course.
In the ICER-COVID Cost-Effectiveness Model, the benchmark price for remdesivir in cost-effectiveness analyses has been increased to $4580−$5080 per course based on new data from the Adaptive COVID-19 Treatment Trial (ACTT-1). However, under a new scenario analysis which assumes that patients also receive dexamethasone as the standard of care, the benchmark price range for remdesivir is lower ($2520−$2800) due to the contribution of dexamethasone in reducing the mortality risk.
ICER is continuing "to calculate pricing levels to meet various cost-effectiveness thresholds while highlighting the policy relevance of pricing in a pandemic at $50,000 per quality-adjusted life year (QALY) and per Equal Value of a Life Year Gained (evLYG)".
Notes
see PharmacoEconomics & Outcomes News 853 p1; 803473078
Reference
Institute for Clinical and Economic Review. ICER Provides First Update to Pricing Models for Remdesivir as a Treatment for COVID-19. Internet Document : 24 Jun 2020. Available from: URL: https://icer-review.org/announcements/updated_icer-covid_models_june_24/
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ICER update to pricing models of remdesivir for COVID-19. PharmacoEcon Outcomes News 857, 2 (2020). https://doi.org/10.1007/s40274-020-6939-6
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DOI: https://doi.org/10.1007/s40274-020-6939-6